NATIONAL RECOVERY

New Zealand Herald, Volume LXX, Issue 21579, 25 August 1933, Page 11

NATIONAL RECOVERY

UNITED STATES PLAN EFFECT OF DOLLAR'S FALL OTHER COUNTRIES INVOLVED By Telegraph—Press Association— Copyright BANFF. Aug. 23 The course of financial and trade events in the whole world in the next four months is likely to be dependent upon the action taken by the United States in respect to the National Recovery Act, in the opinion of Professor T. E. Gregory, professor of banking in the University of London. " 111 iny opinion it will be impossible to implement the Act in the long run if tho American dollar is allowed to fall." Professor Gregory said. " Let us assume that it will bo. necessary for the United States to reduce the value of tho dollar in terms of gold, and let me say what is likely to happen if the dollar falls heavily. " We are almost certain in Britain to witness a new agitation toward lowering the value of the pound sterling. The next thing will be that Japan will follow our example, because of the fight for tho control of textile markets between Bombay, Japan and Lan-. cash ire. " If the dollar continues to fall, and the pound and yen follow, wo are likely to witness enormous pressure on the remaining countries in the gold bloc — France and Holland. If they are driven off the gold standard, Indo-China and Dutch East Indies, which arc linked by political associations with these two countries, will follow. " If Britain is forced to lower the rate of exchange, Scandinavian, Australian and New Zealand exchanges will be affected, because the lowering of tho pound would mean that one group or the other would bo knocked out* of tho butter market, the dairy market and the fruit market unless they followed sterling down," Professor Gregory, added.

TOO MUCH PRODUCTION CANADIANS' SUGGESTIONS SHORTER WORKING HOURS VANCOUVER, Aug. 21 Declaring that the-production facilities of the world are so efficient that industry will never return to its previous levels, the British Columbia command of the Canadian Legion is urging the Government to legalise a sis-hour, day and a five-day week, and the compulsory retirement of workers on pensions at the age of 55. The proposals include a law to make all overtime, also piece work, illegal. MR. FORBES' VIEWS DISTORTION IN AMERICA STATEMENTS MISREPRESENTED [BY TELEGRAPH —PRESS ASSOCIATION] "WELLINGTON. Thursday The acting-Prime Minister, the lit. Hon. J. G. Coates, to-day made the following statement; —" Some days ago I received a cablegram from the Prime Minister asking me to deny certain statements accredited to him by some sections of the American press. In particular he asked that the public should be warned against some alleged remarks of his which had been published in newspapers in Washington, Boston and Toronto.

" Mr. Forbes lias given to the American people an official denial of these misrepresentations, some of which were ridiculous in their purport. All of these wrongly-accredited remarks hare apparently not been cabled to New Zealand.No doubt some of them have been stopped because of the prompt action of tbe Prime Minister,, but the papers in question are likely at some time to reach New Zealand. In the meantime, at the request of Sir. Forbes, the Government is endeavouring to check up ou the position."

The only statements attributed to Mr. Forbes in press cablegrams from the United States and Canada respecting Mr. Roosevelt's national recovery plan have been in favour of it. For instance a message from Boston on August 19 stated:—Confidence that President Roosevelt's programme of reconstruction will lead the United States, and with it the rest of the civilised world, to prosperity, was expressed today by the Prime Minister of New Zealand, Mr. G. W. Forbes. "Mr. Roosevelt is a man engaged in a great mission," he said. • A cablegram from Toronto on August 21 stated that when asked in that city for his opinion of Mr. Roosevelt's plan Mr. Forbes said: "I think.it is a brave attempt to rectify the situation in the United States. It is ail very well to try to cut to pieces a plan like that, but what would you do under similar circumstances and what would anybody do?" PORK MARKET £ STABILISATION SCHEME _ REDUCING HOG POPULATION Washington. Aug. u The agricultural adjustment adminis? tration has decided to remove 4,000,000 young pigs and 1,000,000 brood sows from the hog population of the United States. The objective is to stabilise the pork products market by eliminating 500,000,0001b. of pork. Tho method adopted is a guarantee of special prices of six to nine cents a lb. for 4,000,000 young porkers of 25 to 1001b. weight marketed between now and Christmas. A premium of four dollars a head is also announced for marketing 1,000,000 sows ready to farrow, thus tremendously reducing the baby pig population. A special processing tax against packers will provide a bonus to induce farmers to keep down hog production. After the New Year, marketing of hogs weighing more than 2351b. will be prohibited by the imposition of excess taxes.